Saudi Arabia - joining the dots

A series of blog entries exploring Saudi Arabia's role in the oil markets with a brief look at the history of the royal family and politics that dictate and influence the Kingdom's oil policy

AIM - Assets In Market

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Iran negotiations - is the end nigh?

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Yemen: The Islamic Chessboard?

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Acquisition Criteria

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Valuation Series

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Showing posts with label Erin. Show all posts
Showing posts with label Erin. Show all posts

Friday 9 November 2018

The Gambia's Samo-1 well disappoints


The JV in offshore Blocks A2/A5 has announced a disappointing result on the Samo-1 well. The JV, which comprises FAR Limited 40%, Petronas 40% and Erin Energy 20%, has hit water.

FAR Limited had prospective P50 resource estimates of 825mmbbl (gross unrisked) with a 55% geological chance of success. Wireline logs indicate that the target was water bearing. The Government of Gambia has now granted a six month extension to end of June 2019 to enable a thorough evaluation of the Samo-1 well result.

The blocks contain numerous other prospects including Saloo and Bambo for follow-up exploration. The findings from Samo-1 will guide next steps.

In the meantime, FAR Limited and its partners are continuing with the SNE development with development plans recently submitted to the Government of Senegal. FID for this 500+mmbbl development is targeting for end 2019 with first oil in 2022.


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Monday 26 February 2018

FAR goes further with another industry partner



On 26th February, FAR announced that it had agreed to farm-out a 40% interest in Blocks A2 and A5 in The Gambia to Petronas. FAR will retain 40% and operatorship; the remaining 20% is held by Erin Energy – FAR farmed in to the blocks in March 2017 in return for upfront payment of USD5.2 million and FAR funding an exploration well (to be drilled in 2018) up to USD8 million.

Under the deal, Petronas will fund 80% of the Samo-1 exploration well up to USD45 million with the option to take on operatorship for the development. Petronas will also pay USD6 million on closing of the transaction, well back costs of USD6.4 million and non-well back costs of USD1.1 million. The well is planned to be drilled in late 2018 targeting unrisked prospective resources of 825mmbbl.

These are highly exciting blocks, lying to the south of the large SNE and FAN discoveries in Senegal and presents an opportunity to potentially capture the successful trend to date along the coast of West Africa. FAR has completed detailed geotechnical studies and from 3D seismic, FAR has identified large prospects similar to the fields that FAR has participated in in Senegal. FAR has mapped two drillable prospects, Samo and Mambo with further leads identified on the block.



The entry of Petronas comes a year after FAR attracted another major NOC into the basin – in March 2017, FAR and CNOOC entered into an Area of Mutual Interest (“AMI”) agreement with CNOOC with the two companies agreeing to partner in evaluation, bidding and negotiating farm-ins and licences across Senegal and The Gambia. The AMI lasts for a period of two years.


Friday 31 March 2017

FAR AMI with CNOOC in Senegal and The Gambia


On 31st March, FAR announced that it had entered into an Area of Mutual Interest Agreement with Chinese state giant CNOOC for the joint co-operation on the evaluation of and entry into new opportunities across Senegal and The Gambia.

This follows on FAR’s farm-in to 80% of Blocks A2 and A5 in Gambia from Erin Energy earlier this week.

The announcement on the arrangement with CNOOC follows:

“FAR has signed an Area of Mutual Interest (“AMI”) agreement with CNOOC UK Limited (“CNOOC UK”). The AMI covers selected licences offshore Senegal and The Gambia within the designated area.

The AMI provides FAR and CNOOC UK with agreed arrangements to partner in evaluating, bidding, negotiating and managing joint ventures on farm-in and open acreage opportunities for oil and gas licences. The AMI agreement period is for two years.

In combination, FAR and CNOOC UK bring together expertise of the Mauritania-Senegal-Guinea-Bissau (“MSGB”) offshore basin and the capabilities of an international deep water operator.
FAR and CNOOC UK are committed to building long term strategic relationships with the host Governments of Senegal and The Gambia and their people.
This agreement positions FAR to further expand its portfolio and establish itself as one of the major players in the rapidly emerging MSGB Basin – a basin that is increasingly attracting the attention of the world’s oil “majors”.

CNOOC UK Limited is a subsidiary of CNOOC Limited which (together with its subsidiaries) is the largest producer of offshore crude oil and natural gas in China and one of the largest independent oil and gas exploration and production companies in the world.”

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